Credit unions will get at least one more year to prepare for the National Credit Union Administration’s long-anticipated risked-based capital rule after the agency’s governing board approved a pair of modifications to the controversial regulation.
The NCUA board on Thursday pushed the risk-based capital rule's start date to Jan. 1, 2020. The board also increased the asset threshold that defines the so-called complex credit unions that will be subject to the rule, to $500 million.
When the rule was approved in October 2015, the board set a $100 million threshold. The increase has the effect of exempting another 1,026 credit unions. In all, Thursday’s vote leaves about a tenth the nation’s roughly 5,480 federally insured credit unions subject to the risk-based capital rule.
Under the rule, credit unions with assets of $500 million or more will be required to meet a risk-based capital ratio of 10%, in addition to the universal 7% net worth ratio, to be considered well capitalized.
Read more in American Banker.